Risk-Reward Models; America's System Works Best

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Byline: Robert Pavey, SPECIAL TO THE WASHINGTON TIMES

In the aftermath of corporate scandals, Congress currently is debating what to do about stock options. There is a lot at stake since the Financial Accounting Standards Board in March mandated the expensing of employee stock options. It was a sharp blow to our economy's risk-takers, who historically have been at the forefront of U.S. job creation and innovation. The board's proposal threatens to obliterate the one financial incentive that young venture-backed companies rely on to grow.

While employee stock-option programs have become more mainstream within large, publicly traded corporations in recent years, it is …